Can Nursing Home Resident Co-Sign Loan?
Medicaid transfer rules
Question:
My husband is a long-term patient in a nursing home and is on Medicare and Medicaid. Can he be a co-signer on a student loan for his granddaughter? There are no assets in his name but his credit score (which was always good and still is) and Social Security income should make him eligible for signing this loan.
Response:
I’ve never run across this issue before, but I don’t see why not. He could not give away assets to his granddaughter or actually pay off the loan for her without running afoul of the Medicaid transfer of asset restrictions, but agreeing to do so if necessary should be fine.
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